PetroChina announced yesterday it had signed an agreement with Ecuador to make an advance payment of US$1 billion for future oil purchases, Jinghua Times reports.

Ecuador said yesterday that PetroChina would make the payment in the first week of August.

Ecuador has agreed to export 2.88 million barrels of crude oil per month to PetroChina over two years. The deliveries will consist of 2.16 million barrels of Oriente crude oil, and 720,000 barrels of Napo crude oil and the sales will be at market prices.

Under the agreement, Ecuador will have the right to vary the quantity of crude oil supplied by plus or minus five percent.

For more information, please consult the Chinese coverage here:

http://www.eeo.com.cn/industry/energy_chem_materials/2009/07/28/145647.shtml

(China.org.cn by Li Xiaohua, July 28, 2009)